Asked by Nicole Steele on Apr 25, 2024
If aggregate demand increases and,as a result,the price level increases but equilibrium real GDP and employment remain unchanged,we can assume that the aggregate demand curve
A) intersects the upward-sloping segment of the aggregate supply curve.
B) intersects the vertical segment of the aggregate supply curve.
C) intersects the horizontal segment of the aggregate supply curve.
D) is horizontal.
Aggregate Demand
The full scale of demand for goods and services in an economy, specified by a common price level across a particular timeframe.
Price Level
The average of current prices across the entire spectrum of goods and services produced in the economy, serving as an indicator of inflation or deflation.
Equilibrium Real GDP
The level of Gross Domestic Product where aggregate supply equals aggregate demand, adjusted for inflation.
- Detail the unified supply and demand scrutiny under the Keynesian and classical ideologies.
- Acquire knowledge about the importance of price levels in the economic sphere and their effect on total supply.
Learning Objectives
- Detail the unified supply and demand scrutiny under the Keynesian and classical ideologies.
- Acquire knowledge about the importance of price levels in the economic sphere and their effect on total supply.